Mastercard is undervalued by 47% per DCF, with high margins and a wide moat, making it an attractive investment.

Pershing Square opened four brand new positions this quarter: Netflix, Visa, Mastercard, and S&P Global.

And what's notable is that each one landed pretty much at 5% of the Pershing Square portfolio. So, this definitely reads as a bit of a rotation into, you know, a cluster of dominant businesses as opposed to Ackman having one big swing this quarter like sometimes he does.

But, one thing to note particularly out of the four new buys is that these are all really wide moat high margin businesses. For example, Visa and Mastercard, they are basically toll booths on global payments.

They are both running margins over 50%. Then, turning to valuations, the most interesting of the bunch from the Simply Wall Street inbuilt discounted cash flow analysis is definitely Mastercard.

It's estimated at 47% undervalued, but zoom out across all four and three of them are actually screened as undervalued by the modeling, not just Mastercard.